Amazon's Request to Annul EUR 1.13 Billion Fine Suspended by Italian Court

Italy's competition watchdog ruled that Amazon had used its dominant position in the Italian market for intermediation services on marketplaces.

Amazon's Request to Annul EUR 1.13 Billion Fine Suspended by Italian Court

Amazon previously said it "strongly disagreed" with the Italian regulator's decision

Highlights
  • EU court might rule on the ongoing case before the next summer
  • The regulator imposed one of the highest fines on US tech giant in Europe
  • Amazon said FBA "is a completely optional service"

An Italian court has suspended a decision on a request by e-commerce giant Amazon to annul a record EUR 1.13 billion (nearly Rs. 9,300 crore) fine imposed by Italy's antitrust watchdog for alleged abuse of market dominance, a court ruling showed on Friday.

Italian administrative court TAR del Lazio said it had suspended judgment pending a ruling by the European Union Court of Justice over the case.

A legal source said the EU court might rule on the ongoing case before the next summer.

Last year, Italy's competition watchdog ruled that Amazon had used its dominant position in the Italian market for intermediation services on marketplaces to favour the adoption of its own logistics service by sellers active on Amazon.

It subsequently imposed one of the highest penalties on a US tech giant in Europe.

An Amazon spokesperson reiterated that the company strongly disagreed with the decision of the Italian Competition Authority (ICA) and would continue to emphasise its position throughout the legal proceedings.

"More than half of all annual sales on Amazon in Italy come from SMBs. We have 20,000 Italian SMBs that sell on Amazon, including sellers that manage shipment themselves, and we constantly invest to support their growth", the spokesperson said in a statement.

The watchdog declined to comment.

After the fine was imposed, Amazon said it "strongly disagreed" with the Italian regulator's decision and would appeal. 

Meanwhile, the authority said Amazon tied to the use of FBA access to a set of exclusive benefits, including the Prime label, that help increase visibility and boost sales on Amazon.

"Amazon prevents third-party sellers from associating the Prime label with offers not managed with FBA," it said.

On the other hand, Amazon said FBA "is a completely optional service" and that the majority of third-party sellers on Amazon do not use it.

"When sellers choose FBA, they do so because it is efficient, convenient and competitive in terms of price", the US group said in a statement.

© Thomson Reuters 2022


The Chromecast with Google TV that runs on Android TV is here. When will Google learn how to name products? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

 

 

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Amazon, Italy Antitrust Fine, Prime
Elon Musk Receives Pleas to Remove Bans on Accounts Soon After Twitter Takeover
Google Said to Be Planning to Legally Challenge India's Antitrust Crackdown on Android
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.